Location Issue

[Anonymous4567]

Hello all, I created a new account to keep this specific post anonymous. We have a big decision to make with our lease. We are currently doing 16-19k/week, however our lease has come due. The lease was up a few months back, but the landlord has yet to contact us to renew. We have contacted them with no response. They can be unorganized at times, but we fear the worst. We have an opportunity in the area, a few miles away from our current location. It’s bigger, 1000 square feet bigger in fact, however, the plaza is much busier, sits right in front of a housing development that we frequently deliver to, plus we can gain a lot more customer due to this potential locations vicinity to new housing plans. The landlord of the potential location is drafting up a lease currently so we have not negotiated a price per square foot, but we can estimate rent is going to be atleast 3k more a month.

Is this potential move justified by necessity AND opportunity, one or the other, or possibly not justified at all?

Looking forward to your responses.

 

[d9phoenix]

My only question for you is, Can you pay your bills if nothing changes other then the rent going up 3k a month ?

If you can, move. Don’t wait on your old Landlord.

If you can’t, try to negotiate a break even point with the new landlord. At least until your sales go up. If i were you i would just plan on moving, it seems your current landlord has something going on. And for your business this uncertainty is not a good thing. Can you afford to be out of business for a unknown amount of time if the worst did happen ?

 

[system]

My only question for you is, Can you pay your bills if nothing changes other then the rent going up 3k a month ?

If you can, move. Don’t wait on your old Landlord.

If you can’t, try to negotiate a break even point with the new landlord. At least until your sales go up. If i were you i would just plan on moving, it seems your current landlord has something going on. And for your business this uncertainty is not a good thing. Can you afford to be out of business for a unknown amount of time if the worst did happen ?

Thanks for the reply. Leaning towards moving currently

 

[paul7979]

$3K/ month more is a lot, it’s going to take a 10% or more bump in sales just to cover that. What will you do with the extra 1000 feet? How much buildout will you have to do at this location? Are you ready to shell out $100K for it? I guess the question to ask yourself is would you plan to move if you had a 3 year extension you could option on your current lease? If the answer is yes, then moving forward with the new location is a no brainer. If not, I would work on negotiating the lease as well as continue trying to get in touch with current landlord. Be careful though as it will likely take some time to permit and do the buildout so you don’t want to push them so hard they give you notice to vacate.

 

[system]

There’s got to be something more to the backstory. In regards to your location, why would you want to fix something that isn’t broken? I have seen a moderately successful pizza restaurant move a couple miles away and lose sales. I have seen struggling pizza restaurants move a block away and see a significant increase in sales. It’s such a volatile dynamic that you cannot predict. Personally, I think if you’re doing $16k-$19k/week, you are in a successful location and it would be wise to stay. You made no mention as to what services you offer. Are you a sit down location? Carryout/Delivery? Buffet? Have you given thought to making location #2… store #2?

 

[system]

$3K/ month more is a lot, it’s going to take a 10% or more bump in sales just to cover that. What will you do with the extra 1000 feet? How much buildout will you have to do at this location? Are you ready to shell out $100K for it? I guess the question to ask yourself is would you plan to move if you had a 3 year extension you could option on your current lease? If the answer is yes, then moving forward with the new location is a no brainer. If not, I would work on negotiating the lease as well as continue trying to get in touch with current landlord. Be careful though as it will likely take some time to permit and do the buildout so you don’t want to push them so hard they give you notice to vacate.

There is no buildout needed. Hoods are there for ovens and fryers. Ethernet and phone lines have been run throughout. Walk-in cooler and freezers are there as well. Tables and booths are there and would be Dine In, and DelCo.

 

[system]

There’s got to be something more to the backstory. In regards to your location, why would you want to fix something that isn’t broken? I have seen a moderately successful pizza restaurant move a couple miles away and lose sales. I have seen struggling pizza restaurants move a block away and see a significant increase in sales. It’s such a volatile dynamic that you cannot predict. Personally, I think if you’re doing $16k-$19k/week, you are in a successful location and it would be wise to stay. You made no mention as to what services you offer. Are you a sit down location? Carryout/Delivery? Buffet? Have you given thought to making location #2… store #2?

Yes there is more to the backstory. Staffing is an issue so possible relocation would only work as opposed to #1 & #2 locations

 

[paul7979]

There is no buildout needed. Hoods are there for ovens and fryers. Ethernet and phone lines have been run throughout. Walk-in cooler and freezers are there as well. Tables and booths are there and would be Dine In, and DelCo.

I’m not sure the procedures where you are at but here in Florida it will still take some time to get open. A health department plan review will generally run a month or so. an occupational license might take some time as well depending on what if any permits have to be pulled to bring things up to code. If you haven’t already, start negotiating a lease for the new spot. Once terms are basically set, you can stall for a short while while you try to push your current landlord.

Operating without a lease is a risky gamble as you can get notice to vacate at any time. I had a couple friends who took over their fathers pizza shop in town. The father had been on a month to month for many years. A couple years after the kids took over they get notice that the building was being sold and torn down so they had six months to vacate. They couldn’t afford to move and a business of 35+ years closed for good.